Dewan Housing Finance Corporation Ltd's stock rose about 5 per cent in Tuesday's trading on BSE on news that the company will be holding meetings with its lenders on September 25 and September 27 to discuss the draft resolution plan to alleviate the financial stress that it is currently facing.

At 1039 hours DHFL stock was trading at 43.85 apiece, up 4.65 per cent. In the last one year, the housing finance company's stock moved from a 52-week high of ₹438.75 to a low of ₹37.10 apiece. The company started liquidity issues from September 2018 after debt defaults by IL&FS and its arms.

Read | DHFL to meet lenders on September 25 to discuss resolution plan

Earlier, DHFL, in a stock exchange notice, said the resolution plan had been formulated as per the Reserve Bank of India's June 7, 2019, circular on a prudential framework for resolution of stressed assets. DHFL added that said it has been undertaking extensive discussions with its lenders.

"According to these discussions, the Company will be holding a meeting on Wednesday, September 25, 2019 with its bank lenders to discuss the draft Resolution Plan. A further meeting will also be held on Friday, September 27, 2019 by the company with all its institutional creditors in connection with the draft Resolution Plan," according to the notice.

Last week, DHFL said it has been and is working towards its Resolution Plan (RP) which has been examined by the Board and recommended to lenders.

"We expect further strides in gaining acceptance of a larger fraternity of lenders to join the inter-creditor agreement and give definitive acceptance to the RP," it added.

As at March-end 2019, DHFL had total borrowings (other than debt securities) of ₹40,604 crore, including term loans from banks aggregating ₹31,759 crore. Its total liabilities also include debt securities (primarily funds raised via non-convertible debentures) of ₹45,379 crore and deposits aggregating ₹6,588 crore.

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